Core Insights - The global semiconductor industry is undergoing a technological iteration centered around silicon carbide (SiC) and gallium nitride (GaN), which are crucial for enhancing energy efficiency in the renewable energy sector [1] - Tianyu Semiconductor is set to enter the capital market, marking a significant milestone in its development and providing a high-quality investment opportunity in the hard technology sector [1] Industry Overview - The market for silicon carbide power semiconductor devices is projected to grow from $3.2 billion in 2024 to $15.8 billion by 2029, with a compound annual growth rate (CAGR) of 37.3%. The Chinese market is expected to grow even faster, with a CAGR of 41.7% during the same period [2] - Silicon carbide plays an irreplaceable role in the AI sector due to its superior physical properties, especially as demand for AI computing power surges [2] Company Positioning - Tianyu Semiconductor ranks first in both revenue and sales in the Chinese silicon carbide epitaxial wafer market, with market shares of 30.6% and 32.5%, respectively. Globally, it holds 6.7% and 7.8% market shares, placing it among the top three [2] - The company has gained recognition from leading international clients such as Infineon and ON Semiconductor, successfully integrating its products into the supply chains of top global integrated device manufacturers [2] Valuation Analysis - Tianyu Semiconductor's expected market capitalization upon issuance is approximately HKD 22 billion. Compared to peers, this valuation appears significantly attractive, especially when considering the high valuations of other companies in the sector [3] - For instance, the market capitalization of GaN concept company Innoscience is around HKD 62.9 billion, while Tianyu's estimated valuation is lower despite its leading position in the market [3] - The valuation of Tianyu Semiconductor is also favorable when compared to pre-IPO valuations of similar companies, indicating a clear discount [3] Investment Mechanism and Support - Tianyu Semiconductor employs a public offering strategy with a 10% B mechanism, which historically provides unique support for company performance post-listing in the Hong Kong market [4] - The company has implemented a 15% green shoe mechanism to stabilize stock prices, allowing underwriters to buy shares if the stock price falls below the offering price, thus providing an additional safety margin for investors [4] - The company's production capacity utilization is expected to approach 60% by May 30, 2025, reflecting a tight supply-demand balance, with IPO proceeds primarily allocated for capacity expansion [4] Strategic Outlook - Driven by national strategies for semiconductor self-sufficiency and a global energy revolution, Tianyu Semiconductor is poised for a value reassessment post-listing, representing a historic investment opportunity in China's third-generation semiconductor industry [5]
天域半导体招股：碳化硅龙头估值优势凸显，投资价值广阔